March $1,2025$

Borrowed $$450,000$ from Lessburg Bank. The $15-$year, $5\%$ note requires payments due annually, on March $1.$ Each payment consists of $$30,000$ principal plus one year's interest.

December $1,2025$

Mortgaged the warehouse for $$350,000$ cash with Saylor Bank. The mortgage requires monthly payments of $$3,000.$ The interest rate on the note is $8\%$ and accrues monthly. The first payment is due on January $1,2026.$

December $31,2025$

Recorded interest accrued on the Saylor Bank note.

December $31,2025$

Recorded interest accrued on the Lessburg Bank note.

January $1,2026$

Paid Saylor Bank monthly mortgage payment.

February $1,2026$

Paid Saylor Bank monthly mortgage payment.

March $1,2026$

Paid Saylor Bank monthly mortgage payment.

March $1,2026$

Paid first installment on note due to Lessburg Bank.